A typical monthly home loan payment includes principal, interest, taxes, and insurance. Why do lenders require borrowers to contribute to their annual property taxes with each monthly loan payment?

• It allows the borrower to write-off their tax payments when filing their personal income taxes.
• It allows the borrower to pay less in property taxes each year.
• A borrower never pays a portion of their annual taxes as part of their monthly loan payment. Instead, they make a single lump-sum payment each year.
• It serves as security for the lender. This way the lender ensures the borrower's taxes are paid each year and a tax lien will not be placed on the property.